BILL NUMBER: SB 1593	CHAPTERED  09/26/00

	CHAPTER   667
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   AUGUST 11, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN SENATE   MAY 30, 2000
	AMENDED IN SENATE   MARCH 22, 2000

INTRODUCED BY   Senator Burton
   (Coauthor:  Senator Alarcon)
   (Coauthors:  Assembly Members Lowenthal, Mazzoni, and Wildman)

                        FEBRUARY 18, 2000

   An act to amend Sections 50800, 50801, 50801.5, 50802, 50802.5,
50804, 53260, 53265, 53275, 53280, and 53300 of, and to add Sections
50675.12 and 53311 to, the Health and Safety Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1593, Burton.  Housing programs.
   (1) The existing Multifamily Housing Program requires the
Department of Housing and Community Development to administer
deferred payment loans to be used to pay for the eligible costs of
housing development projects.  The program requires loans to be
provided to projects that meet specified requirements and criteria,
such as the ability of the project to serve households at the lowest
income levels.  Existing law requires the department to report
annually to the Governor and the Legislature on housing programs
administered by the department.
   This bill would require the department to include annually in that
report to the Governor and the Legislature a specified report on the
Multifamily Housing Program.
   (2) Existing law establishes the Emergency Housing and Assistance
Program and prohibits the program from conflicting with the federal
Steward B.  McKinney Homeless Assistance Act.  It also requires the
Department of Housing and Community Development to adopt regulations
regarding the administration of the program and prohibits these
provisions from being construed to preclude a provider of emergency
shelter or transitional housing from restricting occupancy on the
basis of sex.
   This bill would define the term "Safe Haven" for purposes of the
program.  It would require providers of emergency shelter or
transitional housing to provide adequate facilities within their
range of services so that all members of a family may be housed
together.
   (3) Existing law requires the Department of Housing and Community
Development to ensure that not less than 20% of the moneys in the
Emergency Housing and Assistance Fund are allocated to nonurban
counties during any given fiscal year.  It authorizes the department
to determine limits on the amount for capital developments and
prohibits the department, or a designated local board, from granting
more than $500,000 to any eligible organization within a region.
   This bill would, among other things, require, if the funds
allocated to nonurban counties are not awarded by the end of a
specified period, to be allocated subsequently to urban counties.  It
would also require the department to consider, by June 30, 2001,
increasing its limits on the amount for operating grants and capital
grants, as specified, prohibit a grant of more than $1,000,000 to any
eligible organization within a region in a funding round, and
authorize eligible designated local boards to use a specified
percentage, not to exceed 2%, of the grant award to defray
administrative costs.
   (4) The existing California Statewide Supportive Housing
Initiative Act requires the State Department of Mental Health to
award grants to local government or private nonprofit agencies for
services to a target population that is defined to include adults
with low incomes having one or more disabilities or individuals
eligible for services provided under the Lanterman Developmental
Disabilities Services Act and may include specified other groups or
individuals.  The act establishes a Supportive Housing Program
Council to assist with the implementation of the act.  The act also
requires the department to award grants for up to a 3-year period and
in an amount that does not exceed $450,000 for a single project, and
$1,000,000 for an application from a single jurisdiction for several
projects.  The act prohibits more than 10% of the amount
appropriated in a fiscal year for purposes of the act from being used
for state administration of the act.
   This bill would, among other things, revise the definition of
target population to include veterans, include the Director of the
California Tax Credit Allocation Committee on the council, extend the
time period for specified grants to not exceed 15 years, and raise
the maximum amounts for the grants to $2,000,000 for a single project
and $3,000,000 for an application from a single jurisdiction for
several projects.  It would also authorize 10% of the amount
appropriated for purposes of the act to be used for state
administration of the act, notwithstanding the allocation of
specified funds in the Budget Act of 2000.  The bill would also
require the State Department of Mental Health to prepare and provide
annually to the Legislature a report relating to specified
information.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 50675.12 is added to the Health and Safety
Code, to read:
   50675.12.  (a) The department shall include in the annual report
required by Section 50408 information that describes all of the
following:
   (1) The number of projects assisted through the program.
   (2) The types of units assisted through the program.
   (3) The location and geographical distribution of the projects and
units assisted.
   (4) The average cost per project, and cost per unit.
   (5) The number of projects and units that have been assisted that
serve special needs populations and information related to the types
of special needs populations served.
   (b) After each Notice of Funding Availability issued for the
distribution of funds pursuant to the program, the department shall
evaluate the ability of projects that serve families or special needs
populations to competitively access the program.  Based on its
analysis, if the department determines that those projects are not
able to apply for or to successfully compete for funding, the
department shall make the adjustments it deems appropriate to ensure
that these populations are adequately served in subsequent Notices of
Funding Availability.  These adjustments may include, but are not
limited to, making adjustments to threshold requirements, evaluative
criteria, or the timing of the issuance of Notices of Funding
Availability to ensure that reasonable funding remains available for
more complex projects that include the supportive services necessary
to serve families and special needs populations.
  SEC. 2.  Section 50800 of the Health and Safety Code is amended to
read:
   50800.  (a) It is the intent of the Legislature to encourage the
provision of shelter, with effective personal rehabilitation and
self-sufficiency development services, to homeless persons at as low
a cost and as quickly as possible, without compromising the health
and safety of shelter occupants.  It is also the intent of the
Legislature to encourage the move of homeless persons from shelters
to a self-supporting environment as soon as possible, to encourage
provision of services for as many persons at risk of homelessness as
possible, to encourage compatible and effective funding of homeless
services, and to encourage coordination among public agencies that
fund or provide services to homeless individuals, as well as agencies
that discharge people from their institutions, including, but not
limited to, child welfare agencies, health care programs, and jails
and prisons.  Because many communities currently provide shelter and
limited services to individuals who are unable or unwilling to comply
with traditional housing programs only during cold and wet weather
and because year-round shelter will encourage these individuals to
accept services and move toward permanent housing, it is also the
intent of the Legislature to increase the availability of year-round
shelter to meet the special needs of those individuals, including a
Safe Haven that provides supportive housing for seriously mentally
ill homeless persons.
   (b) There is hereby created the Emergency Housing and Assistance
Program.
   (c) To the extent possible, the Emergency Housing and Assistance
Program shall not conflict with the federal Stewart B. McKinney
Homeless Assistance Act, as approved on July 22, 1987, cited as
Public Law 100-77, as it is, from time to time, amended, and
regulations promulgated thereunder by the United States Department of
Housing and Urban Development, or its successor.
  SEC. 3.  Section 50801 of the Health and Safety Code is amended to
read:
   50801.  As used in this chapter:
   (a) "Department" means the Department of Housing and Community
Development.
   (b) "Designated local board" means a group, including social
service providers and a representative of local government, that has
met department requirements for distribution of grants allocated by
the department pursuant to this chapter.
   (c) "Director" means the Director of Housing and Community
Development.
   (d) "Eligible organization" means an agency of local government or
a nonprofit corporation that provides, or contracts with community
organizations to provide, emergency shelter or transitional housing,
or both.
   (e) "Emergency shelter" means housing with minimal supportive
services for homeless persons that is limited to occupancy of six
months or less by a homeless person.  No individual or household may
be denied emergency shelter because of an inability to pay.
   (f) "Nonurban county" means any county with a population of less
than 200,000, as published in the most recent edition of Population
Estimates of California Cities and Counties, E-1, prepared by the
Department of Finance, Population Research Unit.
   (g) "Region" means a county or a consortium of counties
voluntarily banding together by action of a designated local board.
   (h) "Safe Haven" means supportive housing for seriously mentally
ill homeless persons, many of whom have cooccurring substance abuse
problems, that have been unable or unwilling to participate in high
demand housing programs.
   (i) "Transitional housing" means housing with supportive services
for up to 24 months that is exclusively designated and targeted for
recently homeless persons.  Transitional housing includes
self-sufficiency development services, with the ultimate goal of
moving recently homeless persons to permanent housing as quickly as
possible, and limits rents and service fees to an ability-to-pay
formula reasonably consistent with the United States Department of
Housing and Urban Development's requirements for subsidized housing
for low-income persons.  Rents and service fees paid for transitional
housing may be reserved, in whole or in part, to assist residents in
moving to permanent housing.
   (j) "Urban county" means any county that is not a nonurban county.

  SEC. 4.  Section 50801.5 of the Health and Safety Code is amended
to read:
   50801.5.  (a) The department shall adopt regulations for the
administration of the Emergency Housing and Assistance Program.  The
regulations shall govern the equitable distribution of funds in
accordance with the intent and provisions of this chapter, and shall
ensure that the program is administered in an effective and efficient
manner.  The regulations shall provide for reasonable delegation of
authority to designated local boards, ensure that local priorities
and criteria are reasonably designed to address the needs of homeless
people, and ensure that designated local boards meet reasonable
standards of inclusiveness, accountability, nondiscrimination, and
integrity.
   (b) The regulations adopted pursuant to this section shall ensure
that emergency shelter and services shall be provided on a
first-come, first-served basis for whatever time periods are
established by the shelter.  No individual or household may be denied
shelter or services because of an inability to pay.  Nothing in this
provision shall be construed to preclude a shelter from accepting
payment vouchers provided through any other public or private program
so long as no shelter beds are reserved beyond sundown for that
purpose.  Notwithstanding Section 11135 of the Government Code,
nothing in this section shall be construed to preclude a provider of
emergency shelter or transitional housing from restricting occupancy
on the basis of sex.  However, in the case of families, providers of
emergency shelter or transitional housing shall provide, to the
greatest extent feasible, adequate facilities within their range of
services so that all members of a family may be housed together,
regardless of age and gender.
  SEC. 5.  Section 50802 of the Health and Safety Code is amended to
read:
   50802.  (a) The department shall ensure that not less than 20
percent of the moneys in the Emergency Housing and Assistance Fund
shall be allocated to nonurban counties during any given fiscal year.
  If the funds designated for facilities operation that are allocated
to nonurban counties are not awarded by the  end of that fiscal
year, then those unencumbered funds shall be allocated in the next
fiscal year to urban counties.  Funds for capital development that
are not awarded by the end of the second fiscal year shall be awarded
in the subsequent fiscal year to urban counties.
   (b) The amount of funds that the department allocates from the
Emergency Housing and Assistance Fund to each region, excluding funds
allocated pursuant to subdivision (a), shall be based upon a formula
that accords at least 20 percent weight to each of the following
factors:
   (1) The relative number of persons in the region below the poverty
line according to the most recent federal census, updated, if
possible, with an estimate by the Department of Finance, compared to
the total of the urban counties.
   (2) The relative number of persons unemployed within each region,
based on the most recent one-year period for which data is available,
compared to the total of the urban counties.
   (c) Grant funds shall be disbursed as expeditiously as possible by
the department.
   (d) The department shall use not more than 4 percent of the amount
available for funds pursuant to this chapter to defray the
department's administrative costs pursuant to this chapter.
  SEC. 6.  Section 50802.5 of the Health and Safety Code is amended
to read:
   50802.5.  (a) The department shall issue a notice or notices of
funding availability to potential applicants and designated local
boards, as applicable, as soon as possible after funding becomes
available for the Emergency Housing and Assistance Program.  Each
notice of funding availability shall indicate the amounts and types
of funds available under this program.
   (b) A designated local board, or the department in the absence of
a designated local board, shall solicit, receive, and select among
applications for grants pursuant to this chapter from eligible
organizations through an open, fair, and competitive process.  These
applications shall be ranked and selected by a designated local
board, or by the department in the absence of a designated local
board.
   (c) Notwithstanding subdivision (b), the department may restrict a
designated local board from selecting any application requesting a
grant for capital developments if the amount requested by the
application exceeds the limits determined by the department, and the
department determines that the designated local board is not
qualified to evaluate the application.  The department shall
establish criteria for distinguishing between a designated local
board that may be so restricted and a designated local board that
would not be so restricted.  A designated local board may appeal to
the director, or to the director's designee, any decision made by the
department pursuant to this subdivision.  The department, by June
30, 2001, shall consider increasing the maximum grant limits to three
hundred thousand dollars ($300,000) for operating grants and five
hundred thousand dollars ($500,000) for capital grants.
   (d) The department, or the designated local board, as applicable,
shall not grant more than one million dollars ($1,000,000) to any
eligible organization within a region in a funding round even if the
eligible organization has filed multiple applications.
   (e) The department shall determine requirements of the grant
contract and shall contract directly with the grant recipient.  The
department shall not delegate this function to the designated local
boards.  Eligible designated local boards may use a percentage of the
regional award funds to defray administrative costs.  The department
shall establish this percentage, which shall not exceed 2 percent.
   (f) The designated local board shall regulate the performance of
any grant contract within their region, subject to department
oversight and requirements established by the department.
   (g) The department shall not perform a secondary rating or ranking
review on those grant applications that have been solicited,
received, and selected by a designated local board according to a
local ranking criterion that has been approved by the department.
  SEC. 7.  Section 50804 of the Health and Safety Code is amended to
read:
   50804.  (a) Each designated local board shall submit to the
department for approval, a local emergency shelter strategy for its
region, describing the procedures for complying with requirements
pursuant to this chapter and the regulations promulgated thereunder.
The department shall establish, by regulation, the types of
information that each designated local board shall include in the
strategy, including, but not limited to, each of the following:
   (1) A statement of goals and how goals will be achieved.
   (2) A statement of priorities and how the priorities complement
the local continuum of care planning process.
   (3) A description of the application process and ranking criteria
for the Emergency Housing and Assistance Program.
   (4) Copies of application forms for the Emergency Housing and
Assistance Program that the designated local board will use to
evaluate requests for grants.
   (5) A statement of how grant recipients shall be encouraged to
develop year-round emergency shelters and transitional housing to
meet the diverse needs of the homeless populations that include
families, youth, and persons with physical and mental disabilities,
people who are addicted to alcohol and drugs, people living with
HIV/AIDS, veterans, the elderly, and pregnant women.  Also, a
description of how the local plan serves the needs of individuals and
families at risk of homelessness as a result of eviction.
   (b) The department shall establish a deadline, by which date the
designated local board shall be required to submit a strategy for the
department's review.
   (c) Upon the department's approval of a strategy, the designated
local board shall make the strategy broadly available to shelter and
service providers and to other interested persons in its region.
  SEC. 8.  Section 53260 of the Health and Safety Code is amended to
read:
   53260.  For the purposes of this chapter, the following
definitions apply:
   (a) "Council" means the Supportive Housing Program Council.
   (b) "Lead agency" means the State Department of Mental Health,
which shall be the governmental agency that is primarily responsible
for administering this chapter.
   (c) "Supportive housing" means housing with no limit on length of
stay, that is occupied by the target population, and that is linked
to onsite or offsite services that assist the tenant to retain the
housing, improve his or her health status, maximize their ability to
live and, when possible, to work in the community.  This housing may
include apartments, single-room occupancy residences, or
single-family homes.
   (d) "Target population" means adults with low incomes having one
or more disabilities, including mental illness, HIV or AIDS,
substance abuse, or other chronic health conditions, or individuals
eligible for services provided under the Lanterman Developmental
Disabilities Services Act (Division 4.5 (commencing with Section
4500) of the Welfare and Institutions Code) and may, among other
populations, include families with children, elderly persons, young
adults aging out of the foster care system, individuals exiting from
institutional settings, veterans, or homeless people.
  SEC. 9.  Section 53265 of the Health and Safety Code is amended to
read:
   53265.  (a) In order to encourage the integration of housing and
services, it is the intent of the Legislature to promote interagency
coordination and collaboration among not only local private and
public agencies, but also among the state agencies responsible for
the provision of housing and support services to very low income
Californians.
   (b) Therefore, there is hereby established the Supportive Housing
Program Council to assist with the implementation of this chapter.
   (c) Members of the council shall include all of the following:
   (1) The following state officials or their designees.
   (A) The Secretary of the Health and Welfare Agency.
   (B) The Secretary of the Business, Transportation and Housing
Agency.
   (C) The Directors of the State Department of Mental Health, the
State Department of Developmental Services, the State Department of
Social Services, the State Department of Health Services, the
California Department of Aging, the Department of Housing and
Community Development, the State Department of Alcohol and Drug
Programs, the California Housing Finance Agency, the Department of
Rehabilitation, the California Tax Credit Allocation Committee, and
the Department of Employment Development.
   (2) Three consumer representatives from the target population,
appointed by the Secretary of the Health and Welfare Agency, shall
also serve on the council.
   (d) The duties of the council shall include all of the following:

   (1) Developing, promoting, and implementing policy supporting this
chapter.
   (2) Assisting the lead agency in reviewing the requests for grant
applications, reviewing grant applications submitted to the lead
agency, and providing the lead agency with recommendations for
awarding grants pursuant to Section 53275.
   (3) Reviewing input regarding program policy and direction from
individuals and entities with experience with the target population.

   (4) Assisting the lead agency to coordinate programs under this
chapter with special needs housing programs offered by government or
private lenders.
   (5) Assisting the lead agency in fulfilling its responsibilities
under this chapter.
   (6) Providing recommendations to the lead agency regarding this
chapter.
   (7) At the request of the lead agency, assisting agencies in
planning and implementing this chapter including assisting with local
technical assistance.
  SEC. 10.  Section 53275 of the Health and Safety Code is amended to
read:
   53275.  (a) Grants shall be awarded by the lead agency based upon
the recommendations of the council and pursuant to this chapter.  The
lead agency shall issue requests for applications for awarding the
grants, which shall specify maximum dollar amounts for which grants
may be awarded.  The request for applications also shall specify
other criteria, as required by this chapter.  Applicants may apply
for a single supportive housing project, or may submit a single
application for several projects.
   (b) The lead agency shall award grants as follows:
   (1) Grants shall be awarded for up to a three-year period except
for grants from funds transferred to, or administered by, the
Department of Housing and Community Development, and awarded for
housing costs, in which case the grants may be awarded for a period
not to exceed 15 years.  Each award shall be in an amount not to
exceed two million dollars ($2,000,000) for a single project, or
three million dollars ($3,000,000) for an application from a single
jurisdiction for several projects at the discretion of the lead
agency, in consultation with the council.  At the discretion of the
lead agency, these grants may include up to twenty-five thousand
dollars ($25,000) for one-time startup grants which may be used,
among other things, for purchasing equipment or furniture, hiring
staff, designing a program evaluation, or hiring a consultant.
   (2) All grants awarded under this subdivision shall be matched by
the grantee with fifty cents ($0.50) for each one dollar ($1) awarded
in the first year, one dollar ($1) for each one dollar ($1) awarded
in the second year, and one dollar and fifty cents ($1.50) for each
one dollar ($1) awarded in the third year and, to the extent that
this funding continues, in subsequent years.  The match shall be
contributed in cash or as services or resources of comparable value.
It is the intent of the Legislature that participants seek and
utilize private funds, or public funds administered by the federal or
local governments for this purpose.
   (3) In order to receive a grant under this chapter, an applicant
shall demonstrate a need for supportive housing for low-income
individuals with special needs and a local commitment to providing
funding for the purpose of developing and operating supportive
housing.
   (c) A local nonprofit agency or local government agency shall be
eligible for a grant under this chapter if it demonstrates in its
program plan that it:
   (1) Meets local priorities for supportive housing as identified in
a publicly adopted planning document, such as the Consolidated Plan
prepared for the Department of Housing and Urban Development, the
Continuum of Care Plan, or a local plan for housing services for the
target population.
   (2) Provides evidence that affordable housing linked to services
appropriate to the target population will be made available.
   (3) Has established collaborative agreements with housing and
service programs to deliver the necessary services and housing to the
target population.
   (4) Requests funding supplements and does not supplant existing
funding.
  SEC. 11.  Section 53280 of the Health and Safety Code is amended to
read:
   53280.  The lead agency shall give preference to proposals that do
any of the following:
   (a) Provide supportive housing to underserved target groups for
which few alternative resources are available.
   (b) Demonstrate collaborative agreements between entities that
fund and provide local public and private housing services.
   (c) Demonstrate cost avoidance as compared to other housing and
service or institutional options available to the specific target
population.
   (d) Propose to serve the target population with an average income
of not more than 100 percent of the federal poverty guidelines, or
higher at the discretion of the council.
   (e) Demonstrate the capacity and readiness to begin operation of a
supportive housing program within one year of receiving the grant.
   (f) Demonstrate linkages to programs established under the Adult
and Older Adult Mental Health System of Care Act (Part 3 (commencing
with Section 5801) of Division 5 of the Welfare and Institutions
Code), or other integrated services projects supported with state or
local government funds.
  SEC. 12.  Section 53300 of the Health and Safety Code is amended to
read:
   53300.  (a) No more than 10 percent of the amount appropriated in
a fiscal year for the purposes of this chapter may be used for state
administration of this chapter, including evaluation and technical
assistance.  Technical assistance shall include, but is not limited
to, assisting with collaborations, providing information, and
convening training workshops.  The Legislature shall be notified of
the administrative costs of this program pursuant to Section 28 of
the Budget Act.
   (b) Notwithstanding the allocation of funds in the Budget Act of
2000 for the supportive housing initiative to the local assistance
Item 4440-101-0001, up to 10 percent of the funds may be spent for
administrative costs, as defined in subdivision (a).
   (c) Notwithstanding any other provision of law, the lead agency
shall make all grant awards from funds allocated in the Budget Act of
2000 for the supportive housing initiative no later than June 30,
2001, and shall expend the funds allocated for those grants no later
than June 30, 2004, except for grants awarded for housing costs, as
specified in paragraph (1) of subdivision (b) of Section 53275.
  SEC. 13.  Section 53311 is added to the Health and Safety Code, to
read:
   53311.  The lead agency shall annually prepare and provide a
report to the Legislature no later than July 1 of each year that
describes all of the following:
   (a) The number of persons housed pursuant to the program.
   (b) The extent of housing stability.
   (c) The demographic characteristics of those housed pursuant to
the program, including veterans, people with mental illness, people
with substance abuse histories, single adults, and families with
children.
   (d) The counties and cities in which the housing is located.
   (e) The changes in income levels of those housed.
   (f) Improvements in health status, to the extent available.
